The global crap games continues, only they are making the rules up as they go along, now.

crap game

Sweet Jesus, Rcade, turn off the typo generator.

"making the rules up as they go along"

Exactly what rules were there to follow? All of this was new and exceptionally complicated needing to be unraveled and quickly! Bernanke did some things wrong in retrospect, so has everyone who draws, or drew, a breath on this earth!

He is going to pay for it by not being reappointed! After all he's done to set things right, he is NOT an Obama team player and therefore must go!

He will be replaced by Lawrence Summers, thanked, and sent to The Old Fed Chairmans Home. After all he just saved our economy!

Summers will take all the credit for what's happened, and pass it on to Obama as a good politician is wont to do!

So basically the Fed was given permission to create 1 trillion in cash to buy a bunch of worthless stuff.
Does anyone see a problem with this?

Even with all this extra cash we're still seeing problems with people wanting to meet market equilibrium.

This can only continue to get worse. From the article I expect sometime around 2010.

Things will get much worse under the marxist mulatto.

"Things will get much worse under the marxist mulatto."

What else would you expect after the ship of state has been driven over a cliff, and the steering wheel handed off?

Absolutely. The past 8 years were garbage too i think. Things are getting worse by the day. It all goes back to the summer of 2008.

I don't trust any of the Goldman Sachs boyz such as Geithner and his lieutenants in Treasury and the Federal Reserve to look out for the US taxpayers.

I do trust Sheila Bair to shoot straight but she's been neutered by Bernanke, Geithner and Obama. She's now in a position like Colon Powell or O'Neill in the Bush administration.

What else would you expect after the ship of state has been driven over a cliff, and the steering wheel handed off?

#7 | Posted by Danforth

I guess Bush deflections are what we are going to get in regards to a horrendous 'stimulus' bill being passed and signed.

"I guess Bush deflections are what we are going to get in regards to a horrendous 'stimulus' bill being passed and signed."

I think the stimulus bill was horrendous. I think talk of a second is ludicrous.

That said, it's tough not to break out the charge card when the outgoing folks took all the money with them.

Your turn: did Bush's responsibility for this clusterfuck end the moment he handed off the steering wheel?

did Bush's responsibility for this clusterfuck end the moment he handed off the steering wheel?

Nope.

I think talk of a second is ludicrous.

I don't think it will happen. The public is WAY too much against it.

did Bush's responsibility for this clusterfuck end the moment he handed off the steering wheel?

The GOP tried to repeal the legislation that was largely responsible for this mess.

They failed at doing so.

To that extent, they are responsible.

They had the power and couldn't get it done.

I'm shocked. You mean the Bushbama Bailout Plan didn't work? Because when I was saying so for the past six months, I was accused of "hoping for failure", or being part of the "party of NO" because I wasn't hopeychangey enough.

Keep buying!

Keep buying!

RiR,

Are you going long, now?

I thought you were shorting.

What happened?

After WWII, our Government, as a matter of policy, made full employment and production a National Goal. Industrialization of the US and destruction of other parts of the world made us the pre-eminent power. FIRE (Finance, Insurance and Real Estate) were subserviant to Manufacturing and we prospered. Those sectors constituted 2% of US Corporate profits. Vital functions, but not profit centers. Any WWII vet unskilled worker could get a home loan for 2.5%, buy a car and rasie a family.

Today these sectors constitute 40% of profits and they have lost the trust of International Investors by engaging in fraud. Fraudulent mortgages, fraudulent Ratings, fraudulent Securities, fraudulent SWAPS, yet legalized through a politically corrupt system.

As the Ponzi schemes unraveled, Treasury and the Federal Reserve have rushed to save the fraudsters, at the expense of innocent taxpayers. For all intents and purposes, control of those Government Agnecies has been privatized. All they care about is their partners in crime. But, because they are being opaque at best and dishonest at worst, nothing is working. As long as this pattern of behavior continues there will be no recovery. The spread between housing costs and real wages is so far out of historical balance that there won't be any real recovery until after Real Estate values finish their inevitable collapse.

Imagine fighting WWII without a steel industry. Whatever happened to sound planning?

I thought you were shorting.

What happened?

#15 | Posted by silver_ironist
* * * *
I have been. But I got tired of being called a "cheerleader for failure" and stuff like that, so I took the sarcastic way out instead.
Up 30.27% on the year now. Presently net 15% ultrashort, with deep in-the-money covered calls protecting my few longs.
Long term, I love China. As long as the Chicomms have better treatment of capital than the Obamites, they're a better buy. But not yet.

"I think the stimulus bill was horrendous. I think talk of a second is ludicrous."

Wow...does this mean you're developing a conservative bone in your body, Danny?

"Your turn: did Bush's responsibility for this clusterfuck end the moment he handed off the steering wheel?"

Hell no! It actually goes back much further than that. We can start with LBJ's Great Society and place a certain amount of blame on EVERY administration since. The real zinger came when the Carter administration passed the CRA. EVERY administration compounded the problem and it came to a head under Bush. However, THIS administration is loading LOGS, not straws, on the camel's back.

"does this mean you're developing a conservative bone in your body, Danny"

I've always had it. I've been against overspending from the start, regardless of party. Or haven't you been paying attention?

"EVERY administration compounded the problem and it came to a head under Bush."

Bush was the only one in the chain with an opportunity to do some real good with extra money. Instead, he pissed it away on a war of choice and tax cuts for the wealthiest.

"The real zinger came when the Carter administration passed the CRA. "

Riiiiiiiiiiight. And it all came crashing down a mere 32 years later, after Rs had complete control for 6 years and could have changed or eliminated the CRA if it was the real culprit.

BTW, the CRA loans were only a percentage of loans, and iirc, their default rate was lower than average. But it was all the loans?!? Do a little reading on leveraging, and get back to us.

RiR,

Just one question, since you are an expert. What happens when everyone shorts?

No sooner had the stress test been announced by the new Administration than the OECD predicted that one of the test's central working assumptions, 3.6% GDP growth in the US for the fourth quarter of 2009, was far off the mark. OECD, and many others since, put US growth in the 1-2 per cent range for Q4.

Official predictions of mortgage assistance are a fiction. The one exception is where banks have been sued by states for mortgage fraud (most banks are settling quickly) and have been ordered to provide relief by the courts. Despite those efforts, we are now witnessing a wholesale transfer of wealth out of minority and working class communities as homes are forfeited in cities and towns across the country and new landlords arrive, heroes of the free market. Homes are now available in Detroit for $200. Meanwhile, about $25 billion was earned last year in credit card late fees.

Clinton, Obama, Rubin, Summers.... Axelrod, Emanuel.. these men share many traits, it would seem, such as extolling the virtues of patience. And the fact that they are all loaded.

Not to worry. Last week Lawrence Summers assured us that "the stimulus is on track".

Excerpted from Carl Ginsburg @ Counterpunch

So basically the Fed was given permission to create 1 trillion in cash to buy a bunch of worthless stuff. Does anyone see a problem with this?

#5 | Posted by Chyess

Sounds like typical government thinking to me. BUT. It gets even better. That isn't what they did with the money. They won't tell where the money went. Imagine that.

Just one question, since you are an expert. What happens when everyone shorts?

#20 | Posted by nutcase at 2009-07-10 11:40 AM
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It's impossible for everyone to short. In order to sell short, somebody is buying. I need people on the other side of my trades, which is why I need more libbies buying into Obamanomics. Options premiums are collapsing, because libtards say "YES! WE CAN!" on the economy, but don't put their money where their mouths are.

How typical is that, come to think of it?

So basically the Fed was given permission to create 1 trillion in cash to buy a bunch of worthless stuff.
Does anyone see a problem with this? -- #5 | Posted by Chyess

Yes, but it's worse than what you've described. (A) The Fed did not get permission -- it invoked emergency powers. (B) It's at least $2 trillion, not $1 trillion.

Ain't the FED great? Lets hear it for the bunch of bankers that don't answer to anybody in the government yet have that power.